Tesla loses \$152 billion after Musk-Trump fallout.
Tesla’s market cap dropped below \$1 trillion, closing at \$916 billion, marking its largest single-day loss in company history.
Tesla’s Worst Day: \$152 Billion Wiped Out After Musk-Trump Fallout
- Massive Share Price Drop and Market Capitalisation Loss
On Thursday, Tesla shares plummeted by 14%, resulting in over \$150 billion wiped from the company’s market value in a single day. This dramatic decline marked Tesla’s biggest one-day loss ever. The company’s market capitalisation fell below the \$1 trillion milestone for the first time in months, closing at \$916 billion. The stock has declined in four out of the last five trading sessions, reflecting growing investor concerns. - Musk and Trump publicly clashed
The sharp fall followed a very public dispute between Tesla CEO Elon Musk and former US President Donald Trump. The clash erupted after Musk criticized the government’s recent spending bill, calling it a “disgusting abomination.” Trump retaliated by threatening to cancel government contracts tied to Musk’s businesses, escalating tensions between the two powerful figures. - Trump’s Accusations and Removal of EV Mandate
Trump accused Musk of being “difficult to deal with” and “overreacting.” On his social media platform Truth Social, Trump wrote that Musk was “wearing thin” and claimed. Trump also said he revoked Musk’s EV Mandate — a government policy pushing electric vehicle purchases — which Musk had strongly supported. - Strained Relationship and Oval Office Remarks
Earlier in the day, Trump spoke from the Oval Office about the deteriorating relationship. I don’t know if we will anymore. I was surprised.” Trump also noted that Musk was upset about the lack of electric vehicle (EV) credits in the new government spending bill, which may have contributed to the fallout. - Musk’s Quick and Defiant Response
Musk responded swiftly on X (formerly Twitter), dismissing the drama with a curt “Whatever.” He also tweeted a reminder of his political influence, saying, “Without me, Trump. - Shift in Musk’s Political Stance
This incident highlights a notable shift in Musk’s political tone. Once closely involved with the Trump administration—leading the advisory group DOGE—Musk has recently taken a more confrontational approach. He condemned the budget bill and called out lawmakers supporting it, suggesting they should face challengers in future elections. His tenure with DOGE officially ended last Friday, right before the fallout became public. - Tesla’s Stock Volatility Amid Weak Sales
Despite weak sales numbers reported recently, Tesla’s stock had enjoyed a strong rally in May, gaining about 22%. However, since the public conflict with Trump began, Tesla shares have dropped nearly 18% in just one week. Overall, Tesla’s shares are down nearly 30% year-to-date, falling sharply from a high of \$488.54 per share recorded on December 18 last year. - Investor Concerns and Future Outlook
The public dispute between Musk and Trump has raised concerns among investors about Tesla’s leadership and potential political risks affecting the company’s contracts and government relations. While Tesla remains a leader in the electric vehicle market, this episode highlights how political conflicts can have immediate financial impacts on even the world’s most valuable companies. Analysts will be watching closely to see if Tesla can recover its valuation and stabilize investor confidence.